Northwest Airlines employees got an early indicator of how the merger with Delta could affect their future this week, when the carrier told some workers that Delta will close a major Twin Cities facility and shift up to 400 jobs to Atlanta.
The precise number of people who will accept relocation packages to move to Atlanta is not yet known.
But a major shift of jobs from Northwest's operations control center could begin as early as 2010.
Since the merger was announced in mid-April, Delta and Northwest executives have insisted that frontline employees, including those working directly with customers, will keep their jobs after a merger takes place.
Delta and Northwest executives told the Star Tribune Tuesday that frontline employees at Northwest's operations center, including flight dispatchers and meteorologists, will retain their jobs in the merger.
But they said they expect to reduce some management jobs when the two carriers merge operations centers in Atlanta.
High fuel prices and a weakening economy are continuing to play havoc with airlines. When United Airlines reported a $2.7 billion second-quarter loss on Tuesday, it said it will cut its domestic flight schedule by about 16 percent late this year and cut 7,000 jobs by the end of next year.
Large and small carriers are dramatically reducing their schedules. Delta and Northwest, before their merger, have been cutting jobs and flights. Delta has reduced its workforce by 4,100 jobs and Northwest said earlier this month it plans to cut 2,500 jobs.
Moving to Atlanta
About 400 employees who are housed in Northwest's System Operations Control (SOC) center were notified Monday that Delta intends to consolidate their work in Atlanta.
Bringing those two workforces together would probably occur in 2010 or 2011.
If federal regulators approve the Delta-Northwest merger, Northwest will operate as a subsidiary of Delta in 2009 and Delta President Ed Bastian will lead the Northwest employees based in Northwest's Eagan headquarters.
Bastian will take over from CEO Doug Steenland, who will join the Delta board.
Northwest could operate as a free-standing airline for 12 to 24 months. But once Delta has the ability to meld the workforces, the operations control jobs would move from Minneapolis-St. Paul International Airport to Atlanta.
Neil Stronach, Delta's senior vice president of operations control, described the work that occurs in the center as "managing the daily pulse of the airline." In addition to flight dispatchers, it houses other highly skilled employees such as maintenance specialists.
Stronach said it's important for the operations staff to confer face to face to address problems with weather, maintenance and air traffic congestion as they occur.
Bob Muhs, Northwest's vice president of system operations control, said Tuesday that he met with his staff shortly after the merger was announced and indicated that it was likely that the center's work ultimately would be consolidated in Atlanta.
While he anticipates that some people will retire instead of move, he also said that many people will choose to remain with the merged airline.
For frontline employees, Muhs said, "I expect [that] unless people choose of their own volition not to move, there will be a job for them in Atlanta."
Unions involved
The Twin Cities center has 165 dispatchers represented by the Transport Workers Union, 47 load agents represented by the International Association of Machinists and Aerospace Workers and 20 meteorologists who have their own union.
There are 287 Northwest employees who fall into traditional SOC jobs, and another 118 employees who work from the SOC on technical operations and maintenance control for the Northwest fleet.
Delta CEO Richard Anderson, who oversaw operations before he became the top executive at Northwest, is familiar with Northwest's SOC, Muhs said. He frequently stopped there to talk with planners, dispatchers and maintenance experts.
"If you are in Richard's airline, you are going to be close to where Richard is located," Muhs said.
Liz Fedor • 612-673-7709